If my income is cut, or I lose my job, how will I react? Most people would dramatically slow down their shopping and spending.
What is the result of that decreased spending? It clearly hurts the economy: Retailers, supermarkets, department stores, and anywhere else you’d normally spend your money is damaged.
What happens to the people who work for those companies? Millions of jobs are lost and the economy crumbles.
Let’s get more specific. What if I, and millions like me, cut out our restaurant visits each week? What if we cut out a vacation? What happens if we put off buying a new car or furniture? No big deal, right?
Wrong. Millions of waiters, busboys, bellmen, hotel maids, hotel security, flight attendants, airplane mechanics, executives, secretaries, salesmen, and even janitors lose their jobs. And when those people lose their jobs, what happens to their spending and those whose jobs are dependent on it?
Even education suffers. Today my younger children are home tutored. They also take swimming, ballet, kung fu and lacrosse lessons. What if I decided to cut back on all that spending because I had less money coming in? What would happen to those tutors and sports coaches? What would all these people that depend on me do without the income? Jobs are lost. Businesses close.
Here is the million-dollar question for progressives and assorted socialist FOOLS (friends of Obama and Obama lovers)…
When you raise taxes, doesn’t it have the exact same effect?
You’re taking money away from people. You are leaving them with smaller paychecks. You are damaging their quality of living. You are making it impossible to spend, or shop, or invest like they did when they had a bigger paycheck.
So how exactly is raising taxes any different than a person taking a pay cut, or losing their job, or a business owner losing a portion of income? The answer, of course, is that it isn’t different.
Obama’s mantra is “Tax the rich, they can afford it.” Really? Well, if you take an extra $5,000, or $10,000, or $25,000 away from me, I can’t afford it. I’ll stop hiring those tutors and coaches, and they pay the price. I’ll cancel my vacation or stop eating out. And, so will over 30 million American small business owners.
So please explain to me, How does raising taxes help the economy? How does it end a depression? I want FOOLS to explain to me how taking money away from consumers and business owners creates prosperity.
Raising taxes kills jobs, kills the economy, and deepens a recession into a Great Depression.
Taxes aren’t the lowest they’ve ever been. They are the highest in history when you add up federal income taxes, state, local, property, sales taxes, social security and medicare taxes, taxes disguised as fees, and the loss of deductions.
The tax burden on small business owners has never been higher. And Obama threatens to make it far higher: perhaps an unimaginable 10 times higher by taking away the home mortgage deduction and removing the cap on Social Security taxes.
This is all causing fear, loathing, depression, and panic among the job creators. This is causing millions of Americans to consider leaving the United States for places where business owners are appreciated and rewarded, not demonized and punished.
Here’s a simple lesson in this scenario. The New York Post reported recently that toll prices (i.e., taxes) at bridges throughout New York had increased dramatically. The result? Traffic has dropped dramatically at those bridges. Taxes ruin everything they touch.
That’s the same reason over $1 trillion dollars of wealth has transferred from New York to Texas in the past decade. Taxes ruin business. Taxes force people to either spend less or re-locate to places with lower taxes.
Let’s compare how different presidents handled the issue of taxes.
When Reagan cut our taxes from 70 percent to 28 percent, everyone had jobs, restaurants were booming, real estate was exploding, and stocks were soaring.
Under tax-and-spend liberals like Jimmy Carter and Barack Obama, the country literally came to a grinding halt.
The lesson in all this is that “trickle down economics” really does exist. Unfortunately Obama is proving it works in BOTH directions. Opportunity and prosperity can trickle down. So can depression, debt, and despair.
Wayne Allyn Root is a former libertarian vice presidential nominee. He now serves as chairman of the Libertarian National Congressional Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." His website: ROOTforAmerica.com
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